Economy has weathered the fallout from Brexit better than the Bank of England expected

By ROBERT FISK

21st September 2016, 1:27 pm

Updated: 21st September 2016, 2:30 pm

BUSINESSES are refusing to panic in the wake of the Brexit vote and instead are planning a hiring spree.

And Theresa May has been in New York City reassuring American companies and asking them to follow the British lead – and keep investing in the UK.

PA

Theresa May has been in New York reassuring American business leaders about Britain after Brexit and how we will still be open for business

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The Prime Minister listened to the concerns of American companies and reassured them she is determined to get the best possible deal from the EU for the UK

Before the referendum on June 23 Remain campaigners including the then Chancellor George Osborne and Prime Minister David Cameron said leaving the EU would cause job losses.

But a survey from the Recruitment and Employment Confederation (REC) found 22% of businesses are planning to take on permanent staff over the next three months.

This is compared to just 4% which are looking at making redundancies.

Employers have mixed feelings about the economy though – with 34% of people questioned saying conditions were getting worse in August.

This is an increase from the 22% in July and 13% in June.

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Companies are planning to increase the number of employees they have with the economy growing faster than Remain campaigners predicted

The economy has weathered the fallout from Brexit better than expected with the Bank of England governor Mark Carney admitting it is growing faster than Project Fear projections.

The Bank had predicted the British economy would only grow by 0.1% between July and and September this year.

Instead the growth rate for the third quarter is more like 0.3%.

But that is still only “about half as much than it was before the referendum”, Mr Carney says – insisting there had been a Brexit hit.

In New York the Prime Minister held a meeting with major US firms, including some of Wall Street’s biggest names, while there for the United Nations General Assembly.

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She insisted she recognised their concerns about what might happen after Britain leaves the EU and wanted to ensure that financial services would be covered by the Brexit deal.

In an interview to be broadcast today on National Public Radio in the US, Mrs May said: "One of the purposes of my meeting with US investors, and that included US banks, was to hear from them what their concerns are and what their key issues are as we go forward for our negotiations.

"And I was able, I hope, to reassure them that I want to ensure the best possible deal for the UK in trade with the European Union, not just in goods but in services.

"I hope the message they took was that I recognise the importance of financial services and the City of London as an important international financial centre."

Kevin Green from the Recruitment and Employment Confederation says 'the fundamentals of the job market are strong'

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A survey by the Recruitment and Employment Confederation found businesses are planning to hire more staff

Economists fear pessimism will cause investment to dry up and mean the economy does not grow as much in the coming months.

Companies taking part in the REC survey also raised the issue of skills shortages and said they had trouble hiring people in engineering, technology, construction and healthcare “due to a shortage of suitable candidates”.

Kevin Green, the confederation’s chief executive, told The Times: “With record high employment in the UK, the fundamentals of the jobs market are strong.

“Thanks to a resilient business-as-usual attitude from consumers since the referendum, demand on businesses has remained buoyant and this is reflected in employers saying they will actively expand their workforces in the coming months.

“There are question marks around the sustainability of positive trends we have seen since the referendum.

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Employers raised fears about skills shortages with the REC calling for an open immigration policy to help businesses

“Skills shortages are a major problem in many sectors, one that will only get worse if the supply of skilled EU workers is curtailed.

“Employer confidence has fallen significantly, suggesting that there is anxiety about what the future holds.”

The confederation wants the government to keep an open immigration policy to help businesses recruit the staff they need.